Abu Dhabi’s Lunate weighs buying stake in HPS Investment

Lunate, the upstart $105 billion asset manager fueled by Abu Dhabi sovereign wealth, is mulling an investment in the fast-growing private credit market.

The firm, launched in January by Sheikh Tahnoon bin Zayed’s International Holding Co. may buy a minority stake in New York-based HPS Investment Partners, which itself is considering an IPO or sale, Bloomberg reports.

Lunate is evaluating an investment of $1 billion or more in HPS, according to the news agency, which says the company is also entertaining interest from BlackRock and private equity firm CVC Capital Partners.

The origins of Lunate trace back to two of Abu Dhabi’s most active holding companies, IHC and sovereign wealth fund ADQ.

It was in March 2023 that IHC announced plans to establish a multi-asset class investment manager, which later became Lunate, and bring on U.S. private equity firm General Atlantic as a strategic partner and investor.